The financial structure of the country plays an important role in the development of the country. It saving and investment of all classes in the economy to create wealth. As banks earn money on the basis of interest provide on the loan amount and other schemes. As money lent by the bank have to be recover after particular time period of time. Sadly, sometimes it not goes by the path defined. Many borrowers fail to return money back to the bank in the form of interest on loan taken. So eventually it became non- performing asset on bank and it creates negative impact on the bank. The purpose of this study is to determine the pattern in growth of gross NPAs in banking industry as well as to determine which measures should be taken to save an asset from becoming NPAs. This is an exploratory study which is conducted by involving the data provided by government website data.gov.in. This study identifies the fact that impact of government finance schemes MUDRA on rising of NPAs of banking industry. It also gives solution on how banks should approach towards lending loans under such schemes such that it prevents the asset from becoming NPA in future.